Question

You are auditing Pell grants provided to students at six state universities. The Pell grant program is a federal financial aid program for college students. The maximum grant a student can receive during a school year is $3,125, with a maximum of $1,041.67 per semester and summer session. The amount of a grant depends on financial need (need) and the number of credits taken (status). Students cannot receive a grant at two different schools during the same school term. You have obtained a file of grants for the current school year (downloaded from the Internet, labeled pellA.XLS) that contains the following information:SSN ......... Social Security numberLast ......... Student’s last nameFirst ......... Student’s first nameMiddle ........ Student’s middle name or initialSchool ........ School—coded 1 to 6Term .......... Coded 1 to 3:● 1—Fall Semester● 2—Spring Semester● 3—Summer SemesterNeed* ........ Financial need—coded 1 to 5:● 1—100% of allowable grant● 2—75%● 3—50%● 4—25%● 5—0%Status* ....... Credits taken—coded 1 to 4:● 1—12 or more credits: 100%● 2—9 to 11 credits: 75%● 3—6 to 8 credits: 50%● 4—3 to 5 credits: 25%Amount ....... Amount of grant for the term● Computation of grant: $3,125 / 3 * Need *Status● For a full-time student with maximum need:$3,125 / 3 * 100% * 100% ¼ $1,041.67● For a student with a code 3 need taking 9 credits:$3,125 / 3 * 50% * 75% ¼ $390.63

1. Develop an audit program to identify potential fraud using ACL.2. Use ACL to perform the steps in your audit program.3. Turn in the following:a. Your audit program referenced to the ACL printouts supporting each audit step.b. A report on your findings including additional steps you would take to determine if fraud actually occurred.c. Appropriate ACL printouts properly indexed with comments written on the printouts to explain the printout and its implications. Do not print out the entire grant file.Extract only the items of significance.